Financial Stability Ratings®

Insurance Sectors We Serve:

"Joe Petrelli's native ability to assess, evaluate and rate experience and factual data objectively is one asset whose strength is off the charts! He has practiced and preached his faith in transparency and accountability before the business schools and business got religion."Steve Acunto, Insurance Advocate

Annual Statements of the Entity, its Parent, Subsidiaries and Affiliates

Quarterly Statements of the Insurer, its Parent, Subsidiaries and Affiliates

Statements of Actuarial Opinion

Management's Discussion and Analysis

Financial Examinations prepared by Departments of Insurance

Independent Audits

Copies of Reinsurance Treaties or other contractual relationships that transfer risk, i.e., joint and shared responsibility.

Step 2: Financial Ratio Calculation

A major determinant of the financial stability of a self-funded entity is our evaluation of critical financial stability ratios benchmarked against our financial stability tests and the representative historical operating results of the insurer. The calculations underlying our review process have been verified and substantiated by subjecting a series of solvent and insolvent self-funded entities to our battery of ratios and tests to assess the predictability and reliability of our analysis process.

Step 3: Review PFSR

The Self-Funded entity has an opportunity to review the assignment of its Preliminary Financial Stability Rating® (PFSR).

Step 4: Finalize assigned FSR

The Self-Funded entity agrees with the assignment of FSR as well as other terms and conditions.

Step 5: Additional Information and Quarterly Reviews

Financial Stability Ratings® are reviewed quarterly and reassigned as verified. The process includes our initial review, quarterly monitoring and twelve months of support related to inquiries from agents, insureds and prospective insureds.

Other services include a mailing to producers to introduce Demotech to them, intervention to address obstacles created due to sole reliance on the ratings of another organization and other reasonable activities required to level the playing field.